What Is The Cost Of Living In Louisiana? (Taxes, Housing, & More)

Depending on where you go in Louisiana, you’ll find opportunities for outdoor adventure, vibrant nightlife, great food, and sports. The Pelican State has a little bit of something for everyone, including an affordable cost of living. All of these qualities are likely why roughly 4.65 million people call it home.

The cost of living in Louisiana is lower than the national average. Schooling, housing, utility, and gas prices are cheaper than in most U.S. states in Louisiana. The median home value in Louisiana is $164,675, and you need to earn at least $24,000 per year to live in the state.

Here’s a look at the costs of essential factors like taxes, utilities, education, groceries, transportation, and more. Use this information to determine the impact a move to Louisiana might have on your finances.

Likely the largest component of your budget is housing costs, making it a significant factor when you consider living somewhere. On the cost of living index, Louisiana’s housing costs are 62.1, far below the national average of 100.

The homeownership rate in Louisiana is 63.5%, which is about on par with the average rate in the country. What you pay for a home varies from city to city, but the median price for the state is $164,675.

Louisiana’s overall home appreciation rates are slightly lower than the national average, with an annual average of about 3.2%. However, in certain cities, like New Orleans, appreciation rates are higher. In fact, nationally, New Orleans falls within the top 20% of home appreciation rates.

Depending on your budget, there are some cities on the more expensive side of homeownership and others relatively low. The median income also varies based on where you live. The price you pay for a home varies considerably based on the city you’re in, as this chart shows.

Related Guide: Safest Neighborhoods In Shreveport, LA?

Overall, food costs in the state are lower than the national average. On the cost of living index, where the US average is 100, Louisiana has a rank of 92.7.

In general, your food budget should be 11% of your annual income, 6% for groceries, and 5% for dining out. Louisiana’s median income is $47,905, so your food budget should be about $5,270 per year. Of course, a big plus of Louisiana is its incredible food, so you might end up dining out often.

Here’s a look at what you could expect to pay for food items in some of Louisiana’s most popular cities.

Overall, Louisiana features slightly lower tuition rates than the national average, but it all depends on the school. For colleges, tuition and fees average about $6,461 for in-state students. Out-of-state students pay an average of $15,514.

One of Louisiana’s most expensive universities is Tulane University New Orleans, with an annual tuition of $56,800. Infinity College, a community college in Lafayette, has some of the lowest tuition rates, with a yearly cost of $585.

If you have children, education costs add a whole other line to your budget. For elementary and high school, roughly 80% of Louisiana’s schools have a religious affiliation.

The lowest private school tuition is $2,365 for St. Mary’s Assumption School (grades Pk-8th) in Cottonport, LA. McGehee School, grades Pk-12th, in New Orleans, has the highest private school tuition with a cost of $20,000.

Transportation costs are another large piece of most budgets. Therefore, it’s vital to note that on the cost of living index, Louisiana has a rank of 108.2. This means the state far surpasses the national average.

A large share of Louisiana households, over 40%, own two cars. Plus, the state features some of the highest car insurance rates, as well. For example, if you opt for full auto-insurance coverage, expect to pay an average of roughly $2,601. Alternatively, if you go with a bare-bones policy, you’ll pay about $771.

Gas prices average about $2.18 a gallon, and the average commute is roughly 25.4 minutes. Drivers pay an average of $1,528.80 a year on gas and $388.57 on car repairs.

Approximately 82.7% of commuters drive alone to work, followed by about 9% who carpool. Not many residents use public transportation.

Louisiana features ample opportunities for diverse entertainment. There are tons of outdoor activities, family-friendly places, museums, sporting events, and more.

Of course, some of the most famous events, like Mardi Gras in New Orleans, are free. Plus, there are many beautiful parks and certain days when admission to museums is free to Louisiana residents.

But, if you plan to check out some of the state’s most popular attractions, you’ll likely have to pay something.

The average cost of health insurance for a 40-year-old in Louisiana is about $596 a month. On the cost of living index, with the national average of 100, Louisiana is 93.9 for healthcare. Depending on your type of coverage, age, and location, insurance rates vary significantly.

For example, a bronze plan would cost a 40-year-old about $511 per month. However, that same plan would cost a 21-year-old roughly $400 a month and a 60-year-old $1,085 per month.

If you want more coverage or a lower deductible, both of these factors can raise rates significantly. For example, for a gold plan, a 40-year-old would pay about $754 a month. For the same plan, a 21-year-old would pay about $590, and a 60-year-old would pay $1,601.